Philenews

Iran Conflict Causes Rise in Tourism Booking Cancellations and Drop in New Bookings in Cyprus

Published March 26, 2026, 14:20
Iran Conflict Causes Rise in Tourism Booking Cancellations and Drop in New Bookings in Cyprus

The conflict in Iran is causing a rise in tourism booking cancellations and a drop in new bookings in Cyprus, as well as in other countries that rely on tourism. Attacks between the US, Israel and Iran led to a wave of cancellations, especially after a hit on a British naval base on the island. Short-term rental cancellation rates skyrocketed, although they have decreased since then, remaining high. The Cyprus Hotel Association has recorded a 40% decrease in bookings for March and April. Hotels in Limassol also report a decrease in bookings, hoping that the situation will improve during the summer months. The slowdown threatens the recovery of tourism in Cyprus. The war is affecting Cyprus's economic prospects, with the Central Bank reducing its growth forecast for 2026. Low-cost airlines report a decrease in demand for Cyprus and Turkey, with travelers turning to other destinations. In Greece, where tourism is important for the economy, effects are also being felt. Aegean Airlines has recorded a decrease in summer bookings from Israel and the Gulf countries. The situation also affects small businesses, such as souvenir shop owners, who are seeing traffic decline.